S&P 500 hits 7,700 points, crypto market welcomes recovery? BTC may reach new highs, ETH could outperform Bitcoin

【Blockchain Rhythm】The gains over the five trading days at the beginning of the year send a positive signal. Overall, this rebound has opened up imagination for the S&P 500 to challenge the 7700-point target.

However, recent volatility is worth paying attention to. The plunge in the financial sector, the overall stock market, and the crypto market all point to policy uncertainties. Once Washington’s credit card interest rate regulation policy is implemented, it will impose significant constraints on the credit issuance capabilities of financial institutions, which is the core reason for the pressure on the financial sector.

But from another perspective, the advancement of the 《Clarity Act》 is a major positive for the crypto industry. The emergence of this bill signals a gradually emerging friendly regulatory environment. The crypto market experienced a deep correction in October last year. From that low point, enough time has passed. According to market evolution laws, the recovery cycle should not be too far away—over time, the market will see a substantial rebound.

Against this backdrop, Bitcoin looks promising. It is expected that BTC may hit a new all-time high this year. At the same time, the opportunities for Ethereum seem even more promising, with many analysts predicting that ETH’s gains could surpass Bitcoin’s. This reflects both the development potential of the Ethereum ecosystem and the market’s expectations for Layer2, DeFi, and other directions.